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New Member
posted Apr 7, 2025 1:37:37 PM

HSA contribution deduction

Why am I not getting a full deduction for my personal contribution to my HSA.  If I enter $0 in HSA my tax due is $1,800.  When I enter $4,150 in HSA my tax due is $900.

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1 Replies
Expert Alumni
Apr 7, 2025 1:42:25 PM

Your personal contribution to your HSA is a deduction which reduces your taxable income. It does not reduce your taxes due dollar for dollar.

 

Your contribution to your HSA has reduced your taxable income by $4,150 and your tax liability by $900, which is correct. Your marginal tax rate is 22%.